Does your insurance includes coverage for PARF / COE?

[inlinesix]

My car's COE will expire by December this year. If I were to renew the COE for 5 years, what is the impact on insurance?

 

What would the premium be for the first and subsequent years? Higher or lower?

 

Which are the insurance companies that will offer coverage?

 

Thanks to all for your input.

 

Only 3rd party liability cover.  Premium should be much much cheaper.

[Theoldjaffa]

Cars that have COE renewed can be covered under comprehensive protection instead of just TPFT.

 

Do not be misled by folks who "heard" or "thinks" that old cars can only be covered under TPFT.

 

I was one of the misguided ones until I saw for myself 3 friends who are covered under comprehensive for their COE renewed cars. AXA, Liberty, Income and Tenet Sompo are among those who do cover.

[1fast1]

Cars that have COE renewed can be covered under comprehensive protection instead of just TPFT.

 

Do not be misled by folks who "heard" or "thinks" that old cars can only be covered under TPFT.

 

I was one of the misguided ones until I saw for myself 3 friends who are covered under comprehensive for their COE renewed cars. AXA, Liberty, Income and Tenet Sompo are among those who do cover.

Of course they can. And if you think about it, that makes sense, since a car you would renew COE for is generally a "keeper", like an exotic or a classic.

 

But the question is: how does the company work out the insured value for the car after COE expiry?

Edited October 23, 2016 by Turboflat4

[1fast1]

I was under the impression that the remaining COE could only be rebated in paper form for the owner to offset the price of a new car.

 

I am delighted to hear that COE could be encashed, if one decides to send his old COE-extended car to the scrapyard.

 

Am I understanding it correctly?

 

Thanks again.

Haha, if they really only give a voucher for buying another car, I would like to see them claim to be "pro car-lite" again with a straight face.

 

[Theoldjaffa]

Of course they can. And if you think about it, that makes sense, since a car you would renew COE for is generally a "keeper", like an exotic or a classic.

 

But the question is: how does the company work out the insured value for the car after COE expiry?

I'm not too sure too, as I don't work for any insurance company.

 

People who renew COE can be for bread and butter cars too, Unless you are referring to those who renew for a second time - then yes it is likely to be a classic, exotic or simply a car worth keeping (like an Alfa Romeo) hahahaha

[1fast1]

I'm not too sure too, as I don't work for any insurance company.

 

People who renew COE can be for bread and butter cars too, Unless you are referring to those who renew for a second time - then yes it is likely to be a classic, exotic or simply a car worth keeping (like an Alfa Romeo) hahahaha

Haha, fair enough. I really should know more about this, as I came very close to renewing the COE (first renewal) for my F430. In the end, I decided with the trade-in offered by Merc, it made more sense to get a new car with all the good stuff that I had grown too used to in my M5 lol.

 

 

But the important thing is that I did manage to get a comprehensive policy that covered half a year into the new period (assuming I had renewed COE). In the end I ended up cancelling that policy (needless to say, I got stiffed on the rebate, but that's always the case). Insurer was Liberty.

[Theoldjaffa]

Haha, fair enough. I really should know more about this, as I came very close to renewing the COE (first renewal) for my F430. In the end, I decided with the trade-in offered by Merc, it made more sense to get a new car with all the good stuff that I had grown too used to in my M5 lol.

 

 

But the important thing is that I did manage to get a comprehensive policy that covered half a year into the new period (assuming I had renewed COE). In the end I ended up cancelling that policy (needless to say, I got stiffed on the rebate, but that's always the case). Insurer was Liberty.

Seems like liberty is the insurer of choice for supercars!

 

For me, my main concern is what constitutes "market value" for COE renewed cars.

 

In the event of total loss, what is the market value to be compensated? Is it the residual COE value, plus the remainder of the straight line depreciated value of the original PARF value that was forfeited, or something else?

 

No one seems to be able to answer my question. Therefore, the worst case is only the COE will be compensated.

 

So assuming you renewed your prancing horse at $50k, and assuming your PAGE was 200k, that means it costs $250k to keep the car for the next 10 years.

 

But if "suay suay" it has to be declared as total loss just a month after renewing, how much will the insurer compensate? Technically the official paper residual value will only be 49k plus and it won't be unreasonable for the insurer to only offer such.

 

Until such time when a clear cut answer can be given, my opinion from a dollar and cent point of view is that it is risky and not worth it to renew cars with high PARF ( to me anything >20k is high) unless one can afford to stomach that loss comfortably, or if the car is really something worth keeping.

[1fast1]

Seems like liberty is the insurer of choice for supercars!

 

For me, my main concern is what constitutes "market value" for COE renewed cars.

 

In the event of total loss, what is the market value to be compensated? Is it the residual COE value, plus the remainder of the straight line depreciated value of the original PARF value that was forfeited, or something else?

 

No one seems to be able to answer my question. Therefore, the worst case is only the COE will be compensated.

 

So assuming you renewed your prancing horse at $50k, and assuming your PAGE was 200k, that means it costs $250k to keep the car for the next 10 years.

 

But if "suay suay" it has to be declared as total loss just a month after renewing, how much will the insurer compensate? Technically the official paper residual value will only be 49k plus and it won't be unreasonable for the insurer to only offer such.

 

Until such time when a clear cut answer can be given, my opinion from a dollar and cent point of view is that it is risky and not worth it to renew cars with high PARF ( to me anything >20k is high) unless one can afford to stomach that loss comfortably, or if the car is really something worth keeping.

Yes, one of the many uncertainties inherent in this. Insurers pretend not to understand things like "body value" even though they continue to charge the same exorbitant rates for the policy.

[inlinesix]

Yes, one of the many uncertainties inherent in this. Insurers pretend not to understand things like "body value" even though they continue to charge the same exorbitant rates for the policy.

 

Insurers has never charge premium based on insured valued of your car.  Instead, it is probability of total loss x value of total loss (simplistically).

[aprilfool22]

I am going to extend my car COE for 10 years soon

 

will my new insurance premium be lower ??

[cmcex]

I am going to extend my car COE for 10 years soon

 

will my new insurance premium be lower ??

 

Why would you think so? Unless its 3rd Party Only, TPFT and COMPRE, of cos go for COMPRE